Page 236 - ELT_15th August 2020_Vol 373_Part 4

570 EXCISE LAW TIMES [ Vol. 373

respectively at the material time which was applicable to goods falling under
CETH 8408 90 90 with the description “Diesel Engine with Centrifugal Pumps”.
The applicant had willfully omitted the classification of the impugned export
goods on the excise invoices and ARE-1s and chose to pay higher rate of duty
from the CENVAT account so as to encash the available CENVAT credit by way
of rebate under Rule 18 of Central Excise Rules, 2002.
5. It is pertinent to mention that the confirmed demands on account of
erroneous rebates have been appropriated by the respondent from the subse-
quent rebate claims of the applicant.
1 8. Section 11AC of the Central Excise Act, 1944 at the material time
read as under :-
“Where any duty has not been levied or paid or has been short-levied or er-
roneously refunded by reasons of fraud, collusion or any willful mis-
statement or suppression of facts, or contravention of any of the provisions
of this Act or of rules made thereunder with intent to evade payment of du-
ty, the person who is liable to pay duty as determined under sub-section (2)
of Section 11A, shall also be liable to pay a penalty equal to the duty so de-
termined.”
9. Since the applicant chose to omit the classification of the impugned
export goods with an intention to encash the accumulated CENVAT credit by
paying higher rate of duty than the applicable rate, the case merits imposition of
penalty under Section 11AC of Central Excise Act, 1944 read with Rule 25 of Cen-
tral Excise Rules, 2002 on the applicant. Hence the lower authorities have correct-
ly imposed penalty of Rs. 3,89,603/- under Section 11AC of the Act read with
Rule 25 of the Central Excise Rules, 2002.
10. In view of the above discussions, the revision application filed by
the applicant is rejected.
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2020 (373) E.L.T. 570 (G.O.I.)

BEFORE THE GOVERNMENT OF INDIA, MINISTRY OF FINANCE
[Department of Revenue - Revisionary Authority]
Ms. Mallika Arya, Additional Secretary
IN RE : VIRENDER VERMA
Order No. 53/2019-Cus., dated 2-12-2019 in F. No. 380/34/B/2017-R.A.
Confiscation - Absolute confiscation of goods - Foreign currency con-
cealed inside inner linings of check in baggage - Release of impugned curren-
cy on payment of redemption fine contested - HELD : Shri Virender Verma
and Tushar Kumar part of Hawala racket, attempted to illegally smuggle huge
quantity of forex out of country - Legal provisions of Foreign Exchange Man-
agement Act, 1999, Foreign Exchange Management (Export and Import of Cur-
rency) Regulations, 2000 and Section 2(33) of Customs Act, 1962 read with Sec-
tion 11 ibid clearly stipulate that attempt to smuggle foreign currency out of
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1 Paragraph number as per official text.
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